HomeMy WebLinkAbout2013-04-15; Parks & Recreation Commission; ; ALGA NORTE COMMUNITY PARKPARKS & RECREATION COMMISSION - AGENDA BILL
AB# 0413-2 INFO
MTG. DATE: 4/15/13 ALGA NORTE COMMUNITY PARK
ACTION
STAFF: HAZELTINE
RECOMMENDED ACTION:
Receive a presentation from the Parks and Recreation staff and recommend to the City Council that the
Parks & Recreation Department operate Alga Norte Community Park.
ITEM EXPLANATION:
Parks & Recreation staff will report on the evaluation of possible viable partners for the operations of Alga
Norte Community Park and make a recommendation as to the best value operator.
An Alga Norte Community Park best value operational assessment has been completed. The assessment
included extensive analysis by Parks & Recreation subject matter experts, a thorough review by the City’s
Finance Department and an independent analysis by Baker Tilly. Based on the review of the existing
proposals and business models, staff is recommending the City operate the park. The primary reasons for
this recommendation include the City’s ability to provide a quality recreation experience that is both cost
effective and is accessible to all.
Background
At the April 26, 2011 City Council Workshop, Council considered altering the design of the park to
accommodate potential operational partnerships. At that meeting, staff was directed to take the
necessary actions to initiate the development of the park as it was designed, and to solicit proposals from
qualified parties to operate and maintain certain portions of the park.
In June 2012, three bids were received in response to the RFP that solicited potential operational
partners. For the purposes of the RFP, the park was divided into two areas. The north portion includes
the aquatic center and skate park, and the south portion includes the athletic fields and dog park. The
Carlsbad Boys & Girls Club submitted a proposal to operate the entire park, Waterworks Aquatics
submitted a proposal to operate the north portion of the park and Sportsplex USA submitted a proposal
to operate the south portion of the park.
In August 2012, the Parks & Recreation Department reviewed and scored the proposals based on pre-
established criteria. In October 2012, the Finance Department reviewed the proposals to validate
projected level of usage and all revenue and expense estimates. Finance’s evaluation included personal
interviews with all potential partners.
In November 2012, Baker Tilly was hired to conduct a Best Value Evaluation of the submitted proposals.
In addition, Baker Tilly reviewed and considered the City’s (Parks & Recreation) operational business
model and Five-Year Forecast.
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Baker Tilly was asked to:
1. Review and evaluate the submittals to determine if viable partners exist to meet the City’s goal to:
a. Eliminate or substantially minimize the City’s contribution to the park operations,
maintenance and future capital improvement costs;
b. Provide a quality public amenity serving a diverse population that is accessible to all;
c. Offer services at a reasonable cost to users, particularly Carlsbad residents and
organizations.
The report addressed a best value evaluation of potential operators for the park based on; responsiveness
of vendors, qualifications of vendors, qualitative review of proposal documents and a risk assessment.
Baker Tilly Analysis Conclusions
• The Boys & Girls Club’s submittal was determined not to be a viable option for either portion of
the park.
• The city is the best value operator of the south portion of the park.
o The Sportsplex USA final proposal would require an additional $2.5 million in additional
capital outlay as they have stated their proposal will not work without significant changes
to the park’s design. The analysis shows a 25 year payback for the City to recoup this
additional investment.
• The city is the best value operator of the north portion of the park.
o The Waterworks Aquatics proposal is based on their exclusive ability to operate the facility,
including setting price points, and establishing their own user group priority schedule.
Should the city negotiate certain price points and/or require priority usage for
existing local groups (CUSD, North Coast Aquatics), the Waterworks Aquatics
business plan would be impacted.
o The Waterworks Aquatics model may offer the best opportunity to reduce the city’s
financial contribution to the operation of the north portion, but it limits accessibility to all
potential users and does so at a higher participation cost.
Their proposal identifies a $3,000 monthly payment to the City.
o The city’s model creates a better opportunity to serve a diverse group at a reasonable cost.
o The city’s operating deficit is modest and can be further modified to reduce expenditures.
Other considerations that make the City the best value operator as identified in the Baker Tilly evaluation
include:
o Selecting from only one qualified vendor would not be recommended.
o Any operator of the north portion of the park would be responsible for the management of
the skate park; Waterworks Aquatics has no experience operating and/or maintaining skate
parks.
Summary
Staff thoroughly reviewed the Baker Tilly report and concurs with its conclusion that the City is the best
value operator of the park. Based on the findings in their report, as well as analysis conducted by both
the Parks & Recreation and Finance Departments, Parks & Recreation Department staff recommends that
the City Council direct staff to take the necessary actions to prepare to operate Alga Norte Community
Park.
EXHIBITS:
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